Analysts warn of global economic risks from U.S. tariffs
By Fortune Abang
Analysts have expressed concern over U.S. tariffs and their potential impact on global economic stability.
During a global virtual session on Monday, experts analysed the tariffs imposed on key trading partners, including China, Canada, the European Union, and members of the Quad alliance.
They noted that while the goal of the tariffs was to protect American industries, the unintended consequences could be far-reaching, potentially jeopardising supply chains, driving up consumer prices, and undermining economic recovery.
The analysts described tariffs as a tax on the cost of imported goods, often passed on to businesses and consumers.
They warned that the average American household could face an additional 1,200 dollars in annual expenses due to these measures.
Rather than pursuing protectionism, the analysts suggested the U.S. could lead through collaboration, advocating for diplomatic engagement over punitive tariffs in resolving trade disputes.
They emphasised that trade policies based on transparency, reciprocity, and mutual respect were more likely to secure long-term economic resilience.
Given the deep interconnection between the U.S. economy and the global market, especially with its top trading partners, the analysts warned that the tariffs risk destabilising these crucial relationships.
Christine Lagarde, President of the European Central Bank, criticised the tariff strategy, highlighting its role in increasing production costs and undermining investor confidence.
She noted that the ripple effects of higher import costs would be felt across everyday life, from groceries to gadgets.
She said this could significantly affect U.S. companies relying on imported materials and components.
Lagarde said industries such as automotive, technology, and manufacturing would be particularly impacted by these increased costs.
Zhou Mi, a senior research fellow at the Chinese Academy of International Trade and Economic Cooperation, cautioned that such tariffs could trigger a recession, with the U.S. economy bearing much of the damage.
He explained that the tariffs could disrupt global supply chains, erode U.S. export competitiveness, and damage relations with key trading partners, including China, Canada, the EU, and members of the Quad alliance.
Li Yong, a senior research fellow at the China Association of International Trade, observed that the U.S. tariff policy had highlighted economic differences and structural inefficiencies in the U.S. economic and governance systems.
He argued that the policy would not address these issues but instead escalate uncertainty, negatively impacting the livelihoods of Americans.(NAN) (www.nannews.ng)
Edited by Abiemwense Moru
